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Determinants of long-term economic growth redux: A Measurement Error Model Averaging (MEMA) approach

Author

Listed:
  • Doppelhofer, G.
  • Moe Hansen, O-P.
  • Weeks, M.

Abstract

This paper estimates determinants of long-run growth rates of GDP per capita in a cross section of countries. We propose a novel Measurement Error Model Averaging (MEMA) approach that accounts for measurement error in international income data as well as model uncertainty. Estimating the model using eight vintages of the Penn World Tables (PWT) together with other proposed growth determinants, we identify 18 variables related to economic growth. In addition, the results are robust to allowing for outliers in the form of heteroscedastic model errors.

Suggested Citation

  • Doppelhofer, G. & Moe Hansen, O-P. & Weeks, M., 2017. "Determinants of long-term economic growth redux: A Measurement Error Model Averaging (MEMA) approach," Cambridge Working Papers in Economics 1702, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:1702
    Note: mw217
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    growth regression; robust growth determinants; measurement error; Bayesian modelling;
    All these keywords.

    JEL classification:

    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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